Attachment

PACIFIC METALS CO., LTD
Financial Results Briefing Session for Fiscal Year
Ended March 31, 2022
May 17, 2022

PACIFIC METALS Website:
https://www.pacific-metals.co.jp/en/Inquiries:
General Administration Dept. (IR Group) TEL: +81-3-3201-6681

2

Table of Contents
1. Profile(1) Company overview(2) Trends in operating results and financial condition(3) Trend in operating results of segments

345

2. Business Details(1) Nickel business
1) Ferronickel business
From raw-material procurement to sales
Raw-material procurement
ProductionSales
2) Slag business(2) Other businesses

67891011

3. Q&A List about Pacific Metals

121. Profile

3(1) Company overview
Brief History

Company Overview (As of March 31, 2022)
Line of Business
Established

Production and sales of ferronickel and slag products
Waste recycling business

1949

Became Nisso Steel Co., Ltd. after being spun off from the steel division ofNippon Soda Co., Ltd.

December 1949

1952

Listed on both the Tokyo and Osaka Stock Exchanges

1954

Started production of ferronickel

1968

Started production of stainless steel

Tokyo Head Office
Location

1-6-1 Otemachi, Chiyoda-ku, Tokyo 100-0004

Hachinohe Head
Office Location

5-2, Toyama Shinden, Kawaragi, Hachinohe City, Aomori 031-8617(Hachinohe Works)

1970

Absorbed Pacific Nickel Co., Ltd. through merger and changed its name to
Pacific Metals Co., Ltd.

460 people (consolidated), 416 people (non-consolidated)

1973

Acquired an equity stake in Rio Tuba Nickel Mining Corporation (thePhilippines) and got involved in development of nickel mines

1987

Acquired an equity stake in Taganito Mining Corporation (the Philippines) andgot involved in development of nickel mines

1995

Installed a 60,000-kVA electric furnace for ferronickel smelting. Three electric
furnace systems established at the Hachinohe Works

1998

Acquired ISO 9002, then transitioned to ISO 9001: 2000 in 2003

1999

Withdrew from the stainless-steel business. Transferred headquartersfunction to Hachinohe to become a specialized manufacturer of ferronickel

2003

Started a waste recycling business2009

Acquired ISO 14001 (environmental management)2012

Acquired OHSAS 18001: 2007

2013

Started operation of a waste-water back-end treatment system

2014

Started operation of an Integrated Management System

Number of Employees
Number of IssuedShares

19,577,071 shares

Securities Code5541 Tokyo Stock Exchange (Prime Section)
Name

Major Shareholders* Ownership ratios arecalculated excluding 74,341
shares of treasury stockBusiness Size(Consolidated)(Million yen)

Number ofShares Held
(1,000 shares)

OwnershipRatio(%)

The Master Trust Bank of Japan, Ltd.

4,773

24.47

NIPPON STEEL Stainless SteelCorporation

2,049

10.51

Custody Bank of Japan, Ltd.

1,586

8.14

Net Sales

57,129Operating Profit

4,806

Ordinary Profit

12,999Profit Attributable to Owners ofParent

11,368

Total Assets

89,852

Net Assets

80,153

Share Capital

13,922

Interest-Bearing Debt

Head Office (Hachinohe Works)

1. Profile

4(2) Trends in operating results and financial condition
Trend in Operating Results

Net sales (100 million yen)

Profit (100 million yen)

800

800

600

600

400

400

200
210

2149

- 18
- 40

- 61

- 77

- 15- 153

- 30

1-2-5- 122

0- 35- 32-4- 18

34-8

936

200

129
633

1148

113

- 383

(200)

- 200

(400)

- 400
2013.32014.32015.32016.32017.3OperatingprofitOrdinary
profit91%

2018.32019.3

Net profit

2020.32021.32022.3

Net sales

Trend in Financial Condition

Amount (100 million yen)1,500

093%

91%

92%

89%89%

Ratio
89%90%88%89%

100%

1,200

80%

900

60%

600

1,257

1,143

1,161 1,078

1,201738

300
040%

1,098
677

717

637

703

626

719

644

699

635

898

754

801670

4

2000

00

000

2013.32014.32015.32016.32017.32018.32019.32020.32021.32022.3

Interestbearing debt

Net
assetsEquity ratio

Total
assets20%0%

1. Profile

Net Sales of Segments(100 million yen)
800

600

5(3) Trend in operating results of segments

9913716196

400
560

9
18677373398

2017.32018.3590543

452

200

61481

35126563

434
3040
2013.32014.32015.32016.3

Nickel business

Segment NamePower generation
business

Gas business(2013.4(2019.4Company Name

2019.3)(Note)

Gas Business(Note)

2020.32021.32022.3

Other)

Ownership
Ratio

Business Details
Production and sales of ferronickel products, slag
products, and incinerated ash recycling

Pacific Metals Co., Ltd.

Nickel Business2019.3

Taiheiyo Kosan Co., Ltd.

74.0%

Transport, contracting, real estate, etc.

Taganito Mining Corporation

33.5%

Mining and sales of ore (in the Philippines)

Rio Tuba Nickel Mining Corporation

36.0%

Same as above

Pacific Sowa Corporation

33.7%

Sales of cast and forged steel products, industrialmachinery, etc.

Pacific Gas Center Co., Ltd.

50.0%

Production and sales of gasses: Consolidated subsidiary: Affiliated company accounted for by the equity method(Note) Pacific Metals changed its business segments to be described as reportable segments of the Group from the second quarter of the fiscal year ended March 2021, and has set“nickel business” and “gas business” as the reportable segments.

2. Business Details6(1) Nickel business

1) Ferronickel business—from raw-material procurement to sales— * Source: Surveyed by Pacific Metals
Raw-Material
Procurement

Production<Types of nickel ores> Oxidized nickel ore: Used by
Pacific Metals<Products after smelting> Oxidized nickel ore: Ferronickel

 Sulfurized nickel ore Nickel sulfide ore: Nickel metal(Composition: Approx. 15% by nickel and approx. 85% byiron)(Composition: 99.9% by nickel)

Sales<Application by product> Ferronickel→ Stainless steel and nickel alloysteel
 Nickel metal→ Stainless steel, electromagnetic
materials, plating and nickel
alloy steel

Nickel30,000 Ni tons/year

Iron
10%

Iron

170,000 tons/year

Ferronickel
products

Others76.3%

Slag1,300,000 tons /year

Slag products

Crystallized water 12.0%(Moistureevaporation)

1,000,000 tons/year

Composition of Nickel Ore

Purchasevolume of ore

2,500,000 tons/year

Ni
1.7%

* Reference figures on the assumption that nickel ore grade is 1.7% (on a dry-basis) and annual nickel production is 30,000 tons.

2. Business Details

7(1) Nickel business

1) Ferronickel business—raw-material procurement—

Pacific Metals’ Purchased Volume of Oxidized Nickel Ore(24,000 Ni tons for the fiscal year ended March 2022)

Oxidized Nickel Ore Deposits in the WorldThe
Philippines
5% Other6%
Brazil8%

New
Caledonia
26%

New Caledonia
32%

Indonesia
12%
Cuba
21%

* Source: Surveyed by Pacific Metals

The Philippines
68%

Australia
22% The Philippines
Rio Tuba Nickel Mining and Taganito Mining are joint ventures in which PacificMetals holds a 36% stake and a 33.5% stake, respectively. Pacific Metals has
provided full-scale technical and personnel assistance and kept mutual exchange
since the initial stage of mine development.

New Caledonia
Cuba

The Philippines

BrazilIndonesia
Australia

New Caledonia

Pacific Metals has had transactional relations with Montagna for more than 20years, and has offered various forms of assistance including financing to MKM.
We have provided both companies with technical cooperation concerning theoperation of mines to procure ore stably based on 10-year long contracts.

Indonesia
Pacific Metals provided PT Antam with technical assistance as the generalsupervisor related to the construction of Indonesia’s first ferronickel smelting plant
as of 1975, and operational guidance. Our advice on mine development andtechnical assistance such as furnace repair remains ongoing.
* In January 2014, a policy to ban exportation of unprocessed ore came into effect. FromJanuary 2017 to December 2019, that policy was partially eased.

2. Business Details

8(1) Nickel business

1) Ferronickel business—production—
Global Ferronickel Production(1,000 Ni tons)(1,000 Ni tons)

400
350
300
250
200
150
10050

* Source: Surveyed byPacific Metals

Ferronickel Production in Japan

5157

44

476053454544372034202441223119251101102016

2017

43474845474343412522202031192412458202018

7044

4125233418282380504034272423221818171644

Others overseas

Vale (South America)

Glencore (New Caledonia)

Two Japanese companies

Pacific Metals

CNMC (Myanmar)

Solway (Guatemala)Americano Ni (Dominica)

PT Antam (Indonesia)

South32 (Columbia)

Anglo American (South America)

SNNC (South Korea)

60

3150301840202020 Year

2019343140304038 Japan

3015100South Korea

13131456552016201720182019Sumitomo
Metal Mining(Hyuga Smelting)Nippon Yakin
Kogyo

Eramet (New Caledonia)

201310502020 Year

30Columbia

2218 Indonesia

2222109New
9 Caledonia
79232010日本冶金工業
2011 20122013 2014
住友金属鉱山大平洋金属

Pacific Metals

 Ferronickel Manufacturing Process Chart
High-temperature
高温排ガス
exhaust gas
微粉炭 coal
Pulverized

Granulator
粉砕機

Ｈ/Ｃ
フェロニッケル

H/C ferronickel

石炭Coal
配合炭 coal
Blendedクラッシャー
Crusher

ドライヤー
Dryer

Crusher
クラッシャー
Nickelore
ニッケル鉱石ショット
Shot

Rotarydryer
ロータリードライヤー
Burner
バーナー
ロータリーキルン
Rotary kiln

Shot-casting
ショット鋳造機
machineSlag
スラグMetal
メタル

回収熱風
ロータリーキルンバーナーへ

PNＰＮ脱硫装置
desulfurization
unit

Nickelニッケル
煆焼鉱calcinatedoreImpactdryer
インパクトドライヤー

フェロニッケル
Ferronickel
smelting
electricfurnace
製錬電気炉
風砕スラグ

クーラー

20-kg
ingot
２０Kg
インゴット

スラグ風砕機貯蔵タンク

徐冷スラグ
Annealedslag

粗フェロニッケル
Crude
ferronickel

Pig鋳銑機
machine2. Business Details

9(1) Nickel business

1) Ferronickel business—sales—(Ni tons)
40,00037,10237,80135,000

4,605

4,856

30,00025,0008,583

11,76933,100

3,981

3,299

6,155

6,440

31,60032,000

3,444
4,640

3,782
3,081

28,5333,019
3,832

10,85513,197

11,617

11,675

1,903

803

3,015

2,897

9,161

5,762

8,051

7,282

9,080

8,295

9,841

11,038

11,2682013.32014.32015.32016.32017.32018.32019.3

10,000
5,000

3,593
2,071

12,44011,77934,52532,274

4,062

4,085

20,00015,000Trend in Sales Volume (by Country)

8,279

27,0601,854
20,793
800
5,819

4,908

5,926
1,813

8,494

6,435

2020.32021.3

7,162
6,236
1,509
10,300India
China
TaiwanSouthKorea
Japan0

Amount(100 million yen)

1,400
1,200
1,000
800
600
400
200
0- 200- 400

2013.3

Trends in Net Sales of Nickel Business and LME Nickel Price

2014.32015.32016.32017.3

Net sales

2018.32019.32020.3Operating profit

2021.3

LME Nickel Price($/Ton)2022.335,00030,00025,00020,00015,00010,0005,000
0-5,000-10,000

2022.3Standards for the Ferronickel Sales Price For Japan[The LME nickel price (Average of the previous 3 months)] [Foreign exchange rates (Average of the previous 3 months)]

 For export[The LME nickel price (Average of the previous month)] [Foreign exchange rates (spot)]→ Pacific Metals’ revenue is linked
with the LME nickel price

LME(Nickel Business)

2013.32014.32015.32016.32017.32018.32019.32020.32021.32022.3

Net Sales (Million yen)

56,02654,30259,06545,23937,35739,855

48,142

44,13330,41956,338Operating Profit (Million yen)

1,780

−3,978−7,987−16,208−3,129−3,412382−1,879

−567

4,950

LME ($/Ton)

16,947

14,356

16,825

10,387

10,042

11,15912,893

13,991

14,99920,602FX TTS (¥/$)

84.10

101.24110.93121.14109.38111.85111.91109.74107.06113.38* The LME nickel priceand FX TTS are theaverages during eachfiscal year.

2. Business Details

10(1) Nickel business

2) Slag business—overview—
Ratio of Slag Products by Application(Fiscal Year Ended March 2022)

Application

Main Features and Benefits

Others0.0%

Earthwork
materials forlanddevelopment
44.2%

Subgradeandsubbasematerials
55.8%(1) Subgrade andsubbase materials

Suitable for soil covering to improve softground(2) Earthwork materials
for land development

Sufficient strength as subbase material andhigh freeze-thaw resistance(3) Smelting materials

Used as auxiliary raw materials to adjust thecomposition of blast-furnace slag

(10,000 tons) Trend in Sales Volume of Slag Products

180160140120100806040
200
2018.32019.32020.32021.32022.3

Scene of Pacific Metals’ slag products in use

2. Business Details

11(2) Other businesses

1) Other businesses—overview—
 Waste recycling business
Production and sales of molten metal and molten slag by recycling incinerated ash and scallop shells(Applications: Aggregate for concrete and asphalt, river wall materials, artificial marine rocks, etc.)
Process Chartin Recycling Facility for Incinerated Ash工程図
and Scallop Shells
焼却灰・ホタテ貝殻リサイクル施設
集塵機
Dustcollector(Bag filter) )(バグフィルター

Chimney
煙突

Exhaustgas
排ガス

Dryer kiln
乾燥キルン

Activated-carbon
absorption
tower
活性炭吸着塔

粉体造粒機
Briquette-making
machine(ブリケットマシン)

ダスト
Dust

Raw-material
原料倉庫 storage

Receivinghopper
受入ホッパー

Wet raw material
乾燥原料

Wet raw material
湿原料

Briquettes
ブリケット
Activated-carbon
absorption
tower
活性炭吸着塔Dried smolder
charcoal
hopper
乾燥灰ホッパー

Dust集塵機
collector(Bag filter) )(バグフィルター

コークス
Coke
input
hopper
投入ホッパー

Coolingtower
冷却塔

Flyash
飛灰(Zn)Lead亜鉛
鉛(Pb)Zinc(Zn),(Pb)For recycling
リサイクル用計量Measuring
hopperホッパー

ブリケット
Briquette
input
hopper
投入ホッパー

石灰石
Limestone
input hopper
投入ホッパー

Secondary
combustion furnace
二次燃焼炉

飛灰
Fly ash
燃え殻、煤塵Cinder, sootand dust

Electricfurnace
電気炉

Molten slag
溶融スラグ
Aggregate for

コンクリート用骨材
concrete

Exhaust
排ガス gasBlending process
：配合工程
Slag
スラグ
Moltenmetal
溶融メタル
For extracting
有価金属抽出用
valuable metal
カウンターウェイト用
For counterweights：乾燥工程
Drying process

Metal
メタル

：溶融工程
Melting process

Exhaust-gas
treatment process：排ガス処理工程12

3. Q&A List about Pacific Metals(1) How do the LME nickel price and foreign exchange rates affect operating results?
- Premise: The selling price of ferronickel products is based on the standard which is [LME nickel price]  [Exchangerates] (See page 9)- Therefore, a rise in the LME nickel price and a weak yen in the FX market work to Pacific Metals’ advantage.
(On the other hand, a weak yen in the FX market becomes a factor that increases purchasing costs of raw materials.)

LME nickel price trend
Price fallForeign exchange trend
Stronger yenProfitdecreaseWeaker yen

Profitincrease

Price rise(2) Which cost factors have a stronger effect on operating results?
- To cite factors impacting operating results in descending order.
(1) Nickel ore, (2) Energy (electricity and heavy oil), (3) Freight (transport of nickel ore and coal) and (4) CoalHigh

Impact on operating results

LowThis material is not disclosure material under the Financial Instruments and Exchange Act and the Company does not guarantee the accuracy orcompleteness of the information.
Any forward-looking statements in this material are based on information available at the time of preparation and may differ from actual results due
to changes in circumstances that may arise in the future. Therefore, please refrain from making investment decisions based solely on this material.
The Company assumes no responsibility whatsoever for any damage resulting from the use of this material.
All copyrights, trademarks, and other intellectual property rights related to this material are the property of the Company.